AUD/USD refreshes weekly top above 0.6600 as RBA, Fed concerns join mild optimism ahead of US NFP


  • AUD/USD takes the bids to refresh weekly top during two-day uptrend.
  • Upbeat Aussie Minimum Wage contrasts with market’s RBA bets to prod AUD/USD bulls.
  • Downbeat concerns about Fed, mixed US data and cautious optimism weigh on US Dollar.
  • Risk catalysts, US employment report eyed for clear directions.

AUD/USD bulls stay in the driver’s seat as it renews weekly top near 0.6615 heading into Friday’s European session. In doing so, the Aussie pair cheers broad US Dollar weakness, as well as upbeat wage announcements from home, while ignoring fears of the Reserve Bank of Australia’s (Fed) policy pivot. Adding strength to the risk-barometer pair’s latest run-up could be the passage of the US debt-ceiling deal through the Senate.

Recently, Reuters conveyed the news that the US Senate clears the debt deal to avert default and sends it to President Joe Biden’s Desk for signature into law. It’s worth noting that the reduction in the hawkish bias for the Federal Reserve (Fed) and mixed US data previously favored the risk appetite and weighed on the US Dollar, which in turn allowed AUD/USD bulls to retake control after a two-day downtrend.

Earlier in the day, Australia’s Fair Work Commission’s (FWC) Annual Wage Review unveiled a 5.75% compulsory hike in the minimum wage to around 180K Australian workers.

The same bolsters the call for the RBA’s 0.25% rate hike in June, versus the ongoing talks that the Fed won’t announce any rate lift in the next meeting. The same help the AUD/USD prices even as some of the prominent analysts expect a policy pivot at the Aussie central bank. Among them are the top four Aussie analyst banks, namely ANZ, CBA, NAB & Westpac.

Against this backdrop, S&P500 Futures print mild gains around 4,230 as it defends the previous day’s bullish move, the biggest in a week, amid a lackluster session. Also portraying the market’s anxiety is the US 10-year Treasury bond yield that prints the first daily gain in six as it bounces off a two-week low to 3.61% by the press time. On the same line, the two-year counterpart steadies near the weekly bottom surrounding 4.35% following a three-day downtrend.

To sum up, RBA chatters and risk catalysts may entertain AUD/USD traders ahead of the all-important US jobs report and the last round of the Fed talks ahead of the pre-Federal Open Market Committee (FOMC) blackout period for policymakers. Also important to watch is the US Senate’s passage of the debt-ceiling bill. Forecasts suggest, Nonfarm Payrolls (NFP) to ease to 190K from 253K prior while the Unemployment Rate is also expected to increase to 3.5% from 3.4%.

Technical analysis

AUD/USD bulls cheer a clear upside break of the three-week-old previous resistance line, now immediate support around 0.6525, to aim for the 21-DMA hurdle of around 0.6630.

Additional important levels

Overview
Today last price 0.6612
Today Daily Change 0.0045
Today Daily Change % 0.69%
Today daily open 0.6567
 
Trends
Daily SMA20 0.6633
Daily SMA50 0.6664
Daily SMA100 0.6758
Daily SMA200 0.6696
 
Levels
Previous Daily High 0.6582
Previous Daily Low 0.6484
Previous Weekly High 0.6668
Previous Weekly Low 0.649
Previous Monthly High 0.6818
Previous Monthly Low 0.6458
Daily Fibonacci 38.2% 0.6544
Daily Fibonacci 61.8% 0.6522
Daily Pivot Point S1 0.6507
Daily Pivot Point S2 0.6447
Daily Pivot Point S3 0.641
Daily Pivot Point R1 0.6604
Daily Pivot Point R2 0.6641
Daily Pivot Point R3 0.6701

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD struggles to recover above 1.0900 as markets remain cautious

EUR/USD struggles to recover above 1.0900 as markets remain cautious

EUR/USD stays on the back foot and trades below 1.0900 following Thursday's sharp decline. Dovish comments from European Central Bank officials and the risk-averse market atmosphere make it difficult for the pair to stage a rebound on Friday.

EUR/USD News

GBP/USD falls toward 1.2900, looks to post weekly losses

GBP/USD falls toward 1.2900, looks to post weekly losses

GBP/USD continues to push lower toward 1.2900 in the American session on Friday. Disappointing Retail Sales data from the UK, combined with the US Dollar (USD) recovery amid souring mood, causes the pair to stay under bearish pressure ahead of the weekend.

GBP/USD News

Gold extends daily slide, trades near $2,400

Gold extends daily slide, trades near $2,400

Gold's correction from the record-high set earlier in the week deepens on Friday. With the US Dollar (USD) benefiting from safe-haven flows and the 10-year US yield holding steady above 4.2%, XAU/USD tests $2,400 and looks to post small weekly losses

Gold News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

Read more

Week ahead – Flash PMIs, US GDP and BoC decision on tap

Week ahead – Flash PMIs, US GDP and BoC decision on tap

US data awaited amid overly dovish Fed rate cut bets. July PMIs to reveal how economies entered H2. BoC decides on monetary policy, may cut rates again.

Read more

Forex MAJORS

Cryptocurrencies

Signatures